Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-07-02
No PROBABLE SHORTAGE.
The Financial Outlook and Prospects OF
Funds for Business Transactions.

lAmerican Grocer of June 22d.
For some time there has been an active
demand for time money, due to an appre-
hension that the large absorptions by the
Government would create an unusual
stringency during August and succeeding
months when money would be required to
move the crops. We have the assurance
from official sources that large disburse-
ments will absorb large proportion of the
receipts, and that the anticipated with
drawal of currency will not be as large as
some compute. 1t is estimated by Gov
eminent officials that the receipts from all
sources during the months of June, July
and August will amount to about S93 600, :
600, and that the payment will be, during
the same period, substantially as follows
On account of interest. 900 600
For - 000, 900
Through redemption of 8 per ct. bonds 100000
Estimated payments from general and
specific appropriatons...... IS, 900, 900
This latter item is an estimate based on
the theory that this year, as in the past,
large payments will be made on account of
appropriations which take effect on July
lst, soon after the funds are available. Sec
rotary Fairchild has given evidence that he
appreciates the necessities of the situation,
and it is generally believed that he will do
all within his power to disburse, early in
the fiscal year, as much as possible, the
money appropriated by Congress. If this
position is correct. then the absorption by
the Treasury during the next three months
will be about ST. 100000.
The plethora of money in European CEN
tiers, and the large shipments made re-
Gently to this center, makes it probable that
in case of a stringency Europe can be re-
lied upon to meet all our necessities. espe-
cially as interest rates this side are much
higher than on the other. We have conf
dence that Secretary Fairchild will be able
TO deposit with banks, on the security of
Government bonds, and, if necessary, by
anticipating the interest on the Govern
ment debt, q considerable portion OF the
SIT ,000, 900 likely to be absorbed by the
treasury, This presents very much more
satisfactory view of the situation than has
been recently taken in Wall street.
During the past year there has been n
large increase in the aggregate circulation
in the treasury and in the hands of the
people. Through the coinage of silver dol
lars and the issuance of silver certificates
the amount has been increased about $52,-
100000. 1t is estimated that there has
been an increase of $2S,000,000 in the
amount of gold coin and certificates, and
as the national bank notes have decreased
about 325, 900, 600 we are justified in stating
that there is much more circulation than
one year ago, leaving out of consideration
the fact that there are more legal-tender
notes in the hands of the people by about
5000, 900 than there were last July.
The elimination OF the speculation in
| wheat and coffee and the liquidation by the
respective cllques will liberate many mill
ions and produce a conservative spirit that
augurs well for the future. A banker re-
Gently remarked, " the pricking of the
wheat speculation and the upsetting of the
| coffee deal probably averted serious panic
the coming fall" With good crops and a
| better foreign demand for domestic prod
ucts than last year there is every reason 10
| look for an active fall trade, and the move
I ment of the crops without serious embar-
rassment through the operations of the
| Uniled States Treasury